Insolvency Proceedings
RBI retains advisory committee of Aviom India Housing post IBC admission
This story was originally published at 15:30 IST on 21 February 2025
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--RBI: Retained advisory committee of Aviom India Housing post IBC admission
MUMBAI – The Reserve Bank of India has retained the three-member advisory committee of Aviom India Housing Finance Pvt. Ltd. after the National Company Law Tribunal admitted a plea to start insolvency proceedings against the company, the central bank said in a press release. The committee will advise the company's administrator during the corporate insolvency resolution process, RBI said.
The central bank had on Jan. 30 appointed State Bank of India Chief General Manager Paritosh Tripathi, former Bank of Baroda chief general manager Rajneesh Sharma, and former PNB Housing Finance managing director and chief executive officer Sanjaya Gupta as members of the advisory committee. It had superseded the board of Aviom India because of governance concerns and defaults in meeting various payment obligations, and appointed Ram Kumar, former chief general manager of Punjab National Bank, as administrator on Jan. 27.
The Delhi bench of the National Company Law Tribunal on Thursday admitted an application by the RBI to start insolvency proceedings against Aviom India under Section 227 of the Insolvency and Bankruptcy Code, 2016.
The RBI's application was also filed under Rules 5 and 6 of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) Rules, 2019. As per Rule 5(b)(i), an interim moratorium is started against the company from the date of filing of the insolvency application till its admission or rejection.
According to media reports, National Housing Bank had investigated the books of Aviom India and discovered inflated investments in mutual funds to show a higher cash balance. The company had in November told lenders that it was facing a cash crunch and payments would be delayed. End
Reported by Ashna Mariam George
Edited by Avishek Dutta
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